One of the most important decisions you can make is to financially protect your family. Term life insurance policies, such as the Gerber Life Term Life Plan1, are one way to do just that.
The “term” in term life insurance means that you’ll be covered for a certain period of time.
But how do you determine how long you might need it?
Here are some things to consider.
More than 40 percent of American families would feel the financial impact from the loss of the “breadwinner” within six months, according to a 2015 fact sheet from LIMRA, a worldwide research organization. If you have dependents, such as children or an aging parent, term life insurance can help to provide continuous care in your absence.
If you’re pregnant or have young children, consider longer-term coverage, such as a 20-year policy. This can help to ensure your children would be provided for until they become adults. If you have teenagers or older dependents, a 10-year term might be a good starting point.
Mortgage payments are still due — even if the unthinkable happens and your salary is no longer a source of income.
With the right amount of coverage, you can help take care of your dependents and possibly some of your mortgage, too. A great benefit of choosing a term life insurance policy is that it lasts only as long as you need it to. So, if you know your mortgage will be paid off in 15 years, a 15-year term life policy might be the best option for you.
Many people have debts other than their mortgage so you’ll want to take these into account as well. Consider how long it would take for your dependents to pay off other outstanding debts, such as a school loan. If the loan would be paid off in 10 years, a 10-year term life insurance policy may be all that you need.
1 Policy Form Series SLT-05